HomeMy WebLinkAbout2025-08-28-RB-min Minutes of the August 28, 2025 Retirement Board meeting:
Present: Robert Cunha,Joseph Foley, Alan Fields, Frederick Weiss, Carolyn Kosnoff, Michelle Malone
and James Condon
Absent: None
The Lexington Retirement Board met remotely through Zoom tele-conferencing and in person. The
Town Clerks Office posted the meeting, which included the information for any interested party to join
the call. Robert Cunha,Joseph Foley, Carolyn Kosnoff,Alan Fields, Frederick Weiss,James Condon and
Michelle Malone were present for this meeting. Robert Cunha called the meeting to order at 8:30 am.
The Board accepted the 082925 Warrant and the August payroll. The July minutes were reviewed and
approved, as well as the June cashbooks.
Robert Cunha reviewed the August agenda with all Board members and staff in attendance.
Reminder to keep up required Board training credits. 3rd Quarter trainings posted to PERAC website.
It was noted two distributions were received from Golub.The first was on 7/24/25 in the amount of
$155,561.00 and the other was 7/25/25 for$114,862.00.
A Fidelity distribution was received on 7/25/25 in the amount of$28,472.00. And lastly, a distribution
from Angelo Gordon was received on 8/22/25 for$944,444.00.
The Board reviewed the recent Audit findings from 2017-2022. After a brief discussion, Robert Cunha
made a motion to approve the findings, which was seconded by Fred Weiss, and unanimously approved
by Carolyn Kosnoff,Joseph Foley, and Alan Fields.
Matthew Smith applied for a Military Buyback of four(4)years. His DD-214 was submitted, as well as
the request to the Board for purchase. Robert Cunha made to motion to accept the buyback, which was
seconded by Joseph Foley, and unanimously approved by Carolyn, Kosnoff, Fred Weiss and Alan Fields.
Michelle Malone gave a brief update on the PTG software used in our office. PTG is offering an upgrade
to their programming. It is called Pension Pro Plus. This software has greater enhancements to the
original software we currently operate. It has been rolled out for users and comes at no cost presently.
However, Michelle will look into the cost down the road for this new product. It is expected to be a
higher cost than our current rate. She will report back with any findings at a future Board meeting.
Also, she mentioned to the Board of our archived files being laserfiched at no cost to the office. This
projected is being conducted by the Lexington LT Department.
Michelle Moesman and Mike Mulcahy presented the Fidelity update at 8:40 am. Mike began with an
update regarding Will Danoff. Will has decided to add Jason Weiner and Asher Anolic to his investment
team. Will has worked his portion of the portfolio alone for several years. He plans to alleviate 10%of
his control and maintain 90%going forward. Eventually, Will will turn over more to Jason and Asher.
There was some minor concern over this move related to the EM structure and how they make
decisions. Steve senses Jason and Asher might not be as aggressive as Will. For the portfolio, Will
mentioned tariffs are still concerning. The IT and Communications strategy is doing excellent. Navidia
seems to be leading the way. The magnificent 7 are performing well overall. Will expects earnings to
exceed 10%going forward. He wrapped up his presentation at 9:05 am.
Colin Edgar presented the Stone Consulting update at 9:07 am. His reported is done every two years.
The current year 25' year to date returns have been turbulent, but largely positive. We remain at a
7.25%. In his presentation deck, Colin has highlighted differences in increasing contributions vs. status
quo of contributions. If we keep our current position, we remain scheduled for full funding in 2030. You
need to read over the section on COLA increases and how it could push out the funding schedule in his
report. Carolyn would like to continue the$750k+a bit more as usual. She maintains a stance of being
fully funded for 2030. Robert Cunha asked the Board members if we should remain at the 7.25%
assumption rate. All were in agreement. Carolyn has requested two additional scenarios for the Board
to review at the next Board meeting. There were a $16k COLA base, and a $17k COLA base. Colin will
put together a schedule for review. His presentation wrapped up at 10:05 am.
Steve MacLellan presented the Meketa update at 10:06 am. Markets were mixed in July with US and
EM stocks outperforming the non-US developed markets. The US stocks, such as the Russell 3000
returned 2.2% in July, while the Russell 1000 returned 3.8%. Tariff policies could have impacts once
implemented. Market inflation is already elevated. This on the heels of the Trump Administrations
announcements of several trade agreements with major trading partners. The Technology stocks
continue to dominate as of late. Nvidia, Microsoft and Broadcom are the top players in the A.I. field.
The portfolio balance as of July 31, 2025 is$282,716,317.00, up$4.7m from last month. Domestic
equity came in just over 2%for July, while other sectors were somewhat flat. Steve mentioned we must
reallocate the Wellington Opportunistic funds soon. RFP's will be sent out by Meketa. Early thoughts
are 25%to US equity, 40%Acadian, 15%to Driehaus, and 10%to cash. This will be revisited at the
September meeting. Steve wrapped the presentation at 10:20 am.
Robert Cunha made a motion the adjourn the meeting at 10:21 am, which was seconded by Joseph
Foley, and unanimously approved by Alan Fields, Carolyn Kosnoff, and Fred Weiss.
The next Retirement Board meeting will be held on Thursday, September 25, 2025 via Zoom.
Kayne Anderson Rudnick and Driehaus will present.
Robert CunhaCharman Alan Fields
, i , Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member